Mathematics in Freelancing: Practical Application

Imagine you are starting a freelancing career as a graphic designer. Embarking on a freelancing career brings unique challenges and opportunities, especially in terms of financial planning and management. In this Apply It, you will apply crucial mathematical skills to situations you’ll encounter as a freelancer. From setting rates to managing budgets and planning for taxes, these exercises will provide you with the practical knowledge needed to navigate the financial landscape of freelancing.

 Let’s start by determining the monthly income needed to cover both your business and personal expenses.

Having calculated the monthly income needed to cover your expenses, let’s now determine your hourly rate. This rate should align with your annual income goals and cover your monthly expenses. Considering a desired annual income of [latex]$60,000[/latex] — which is separate from your monthly personal and business expenses — and planning to work [latex]35[/latex] hours per week for [latex]50[/latex] weeks in the year, let’s calculate the hourly rate that would meet these financial goals. This rate will need to account for both your annual income target and your monthly personal and business expenses.

Now that you have your hourly rate, let’s look at tax obligations and estimate what portion of your income should be allocated for taxes.